Sun, Apr 30, 2006 - Page 10 News List

Bernanke comments, economic data undermine dollar

AFP AND CNA , NEW YORK AND TAIPEI

The US dollar tumbled anew on Friday after economic data and reaction to comments from the new chairman of the Federal Reserve served to undermine the US currency.

At 9pm GMT, the euro stood at US$1.2630, up from US$1.2531 late on Thursday in New York, after climbing to US$1.2639 earlier -- the highest level since May 20 last year.

The dollar dipped to ?113.80 from ?114.14 on Thursday.

Currency traders were reacting to a slew of economic surveys in the US on Friday showing first-quarter growth in gross domestic product, employment costs, consumer sentiment and business activity in the Chicago area.

The figures, combined with a hint on Thursday by US Federal Reserve Chairman Ben Bernanke that the US central bank was close to pausing in its string of interest rate hikes, led to pressure on the dollar.

"The data, on balance, just reinforced dollar negativity at this point," said a senior currency strategist at RBC Capital Markets, TJ Marta.

In late New York trade, the US dollar stood at 1.2383 Swiss francs from SF1.2586 on Thursday.

The pound was being traded at US$1.8250 after US$1.8018.

The greenback lost ground against the New Taiwan dollar in Taipei on Friday, shedding NT$0.01 to close at NT$31.913.

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